by Market Overview:
Electronic chemicals are used extensively in the electronics industry during semiconductor processing, flat panel display manufacturing and other electronic equipment fabrication. They are primarily used for cleaning, etching, oxidation and other process steps. Key electronic chemicals include silicon wafers, organic chemicals, inorganic chemicals and photoresists. With the rising demand for miniaturization and higher performance semiconductors, the application and need for specialized electronic chemicals is growing substantially.
Market Dynamics:
The growth of the global electronic chemicals market is driven by the rapid innovation and rising demand for electronic devices across the world. Semiconductor industry is undergoing tremendous transformation with newer technologies such as artificial intelligence, 5G, internet of things and quantum computing gaining momentum. This is positively impacting the demand for high-performance and more powerful semiconductors. Electronic chemicals play a vital role in manufacturing such advanced semiconductors by enabling miniaturization, multi-functional integration and high-density packaging of circuits.
Second major driver is the increasing application of flexible hybrid electronics in wearable devices, connected cars and smart homes. Electronic chemicals are crucial for the production of flexible printed circuit boards and displays required in such applications. The demand from emerging applications will further propel the electronic chemicals market in coming years.
Segment Analysis
The electronic chemicals market is dominated by the semiconductor and integrated circuits segment. This segment accounts for over 45% of the total market share due to the growing semiconductor industry and increasing use of integrated circuits in various electronic devices such as smartphones, laptops, television and automotive electronics. The demand for specialized chemicals that offer compact size, enhanced functionality and greater productivity is high from this segment.
The global Electronic Chemicals Market Share is estimated to be valued at US$ 67.92 Bn in 2023 and is expected to exhibit a CAGR of 6.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
PEST Analysis
Political: The government incentives and regulations supporting the electronics industry positively impact the demand for electronic chemicals. For instance, production-linked incentives by governments for semiconductor manufacturers.
Economic: The overall growth of the electronics industry drives the electronic chemicals market. As disposable incomes rise, the demand for electronic goods increases rapidly especially in developing nations thereby augmenting market growth.
Social: Increasing electronic penetration and usage of electronic gadgets in day to day life increases the need for quality electronic chemicals that deliver functionality, reliability and performance.
Technological: Advancements in electronics such as miniaturization, artificial intelligence, 5G connectivity etc. necessitate the availability of high-purity chemicals that enable new functionalities and enhance productivity of electronic manufacturing processes.
Key Takeaways
The global electronic chemicals market size was valued at US$ 67.92 Bn in 2023 and is expected to witness high growth, exhibiting a CAGR of 6.4% over the forecast period, due to increasing demand for semiconductors and integrated circuits from diversified end-use industries.
Regionally, Asia Pacific dominated the market in 2023 with a share of over 50% owing to large presence of electronic chemical manufacturers as well as semiconductor fabrication units in countries such as China, South Korea, and Taiwan. China is the fastest growing nation due to aggressive investments by local and international players in the electronics supply chain.
Key players operating in the electronic chemicals market are BASF SE, Air Products and Chemicals Inc., The Dow Chemical Company, Merck KGaA , SUMCO Corporation, JSR Corporation, Shin-Etsu Chemical Co., Ltd., Cabot, Microelectronics Corporation, Tokyo Ohka Kogyo Co., Ltd., Honeywell International Inc. Players focus on capacity expansions as well as new product launches catering to specific manufacturing segments to consolidate their market position.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc.
